racial representation - Blog - Global Risk Community2024-03-28T17:36:31Zhttps://globalriskcommunity.com/profiles/blogs/feed/tag/racial+representation6 Key Areas of Attention for Diversity and Inclusionhttps://globalriskcommunity.com/profiles/blogs/6-key-areas-of-attention-for-diversity-and-inclusion2022-10-22T07:58:29.000Z2022-10-22T07:58:29.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><span style="font-size:12pt;"> </span></p><p><span style="font-size:12pt;">Editor's Note:<em> If you are interested in becoming an expert on Human Resource Management (HRM), take a look at Flevy's <a href="https://flevy.com/browse/stream/human-resources"><strong>Human Resource Management (HRM) Frameworks</strong> offering here</a>. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can stay ahead of the curve. <a href="https://flevy.com/browse/stream/human-resources">Full details here.</a></em></span></p><p><span style="font-size:12pt;"><a href="{{#staticFileLink}}10847231085,RESIZE_1200x{{/staticFileLink}}"><img class="align-full" src="{{#staticFileLink}}10847231085,RESIZE_710x{{/staticFileLink}}" alt="10847231085?profile=RESIZE_710x" width="710" /></a>Diversity and Inclusion are 2 interdependent concepts. Nevertheless, they are not interchangeable. <a href="https://flevy.com/browse/diversity/managing-cultural-diversity-3974">Managing Diversity and Inclusion (D&I) requires</a> activities beyond policies, initiatives, and headcounts.</span></p><p><span style="font-size:12pt;">Diversity refers to the representation of races, ethnicities, and other minority groups in an organization, or its composition.</span></p><p><span style="font-size:12pt;">Inclusion is the degree to which inputs, presence, and perspectives of distinct groups of people are valued and the level to which they are integrated into an environment.</span></p><p><span style="font-size:12pt;">Diverse and Inclusive workplaces have several <a href="https://flevy.com/browse/marketplace/revenue-growth-management--implementation-toolkit-6260">benefits, including improved revenue growth</a><a href="https://flevy.com/browse/stream/innovation">, more innovative capacity</a>, expanded capacity for <a href="https://flevy.com/browse/marketplace/recruiting-selection-and-retention-retain-diverse-employees-3808">recruiting a diverse talent pool, and increased employee retention.</a></span></p><p><span style="font-size:12pt;">Maintaining an inclusive workplace culture not only benefits in attracting a broad talent pool, but also aids in retaining the diverse talent pool.</span></p><p><span style="font-size:12pt;">Diversity is important to <a href="https://flevy.com/browse/business-document/business-performance-improvement-models-218">today's overall business performance</a>. Likewise, Inclusion of varied viewpoints is essential. According to the findings of a long-term research undertaken by the global consulting firm McKinsey, Inclusion appears to have a favorable influence on the bottom line.</span></p><p><span style="font-size:12pt;">Since 2014, the study has tracked the trajectories of dozens of major corporations. It measures both ethnic and cultural Diversity, as well as Diversity based on gender. The 3<sup>rd</sup> analysis, by far the largest data set, contained over 1000 significant corporations from 15 nations. This data collection provided the basis for a report titled "Diversity Wins" (2019).</span></p><p><span style="font-size:12pt;">Recent evidence indicates to the following 6 important areas of attention that favorably or negatively affect performance:</span></p><p><span style="font-size:12pt;"> </span></p><ol><li><span style="font-size:12pt;"><strong>Gender Diversity on Executive Teams leads to stronger performance.</strong></span></li><li><span style="font-size:12pt;"><strong>Progress in Gender Diversity in Boards is slow.</strong></span></li><li><span style="font-size:12pt;"><strong>Women representation low on executive teams all across the studied countries.</strong></span></li><li><span style="font-size:12pt;"><strong>Executive teams with more women perform better.</strong></span></li><li><span style="font-size:12pt;"><strong>Female executive representation across big industries is slow.</strong></span></li><li><span style="font-size:12pt;"><strong>Business justification for Ethnic Diversity on executive teams is very strong.</strong></span></li></ol><p><span style="font-size:12pt;"> <a href="https://flevy.com/browse/flevypro/business-case-for-diversity-and-inclusion-dandi-6420" target="_blank"><img class="align-center" src="{{#staticFileLink}}10847225652,RESIZE_710x{{/staticFileLink}}" alt="10847225652?profile=RESIZE_710x" width="710" /></a></span></p><p><span style="font-size:12pt;">According to the conclusions of the study, the link between Diversity on executive teams and the likelihood of unrivaled financial success is now clearer than ever before.</span></p><p><span style="font-size:12pt;">Let's go a bit more into a few of the findings.</span></p><p><span style="font-size:12pt;"><strong>1. Gender Diversity on Executive Teams leads to stronger Performance</strong></span></p><p><span style="font-size:12pt;">Data has revealed that greater representation enhances the likelihood of improved performance. Companies with 30% or more women on their executive teams are significantly more likely to do well than those with 10% to 30% women. In turn, companies with 10-30% women on executive teams may outperform those with fewer or no women executives. As a result of Gender Diversity, there is a 48% performance disparity between the most and least Gender-Diverse organizations. </span></p><p><span style="font-size:12pt;"><strong>2. Progress in Gender Diversity in Boards is slow</strong></span></p><p><span style="font-size:12pt;">In enterprises headquartered in the United States and the United Kingdom, the proportion of women on boards has increased from 21% in 2014 to 28% in 2019. Despite the fact that this is progress, it is sluggish. In the 2014 data set, a positive association between Board Diversity and financial underperformance was discovered, although it was not as strong as it has been in the current data set. </span></p><p><span style="font-size:12pt;"><strong>3. Women representation low on Executive Teams all across the studied countries</strong></span></p><p><span style="font-size:12pt;">A 2019 data set comprising 15 nations on 5 continents demonstrates that progress in the Inclusion of women on executive teams is gradual in the majority of countries.</span></p><p><span style="font-size:12pt;">On one end of the spectrum of women's representation is Norway, with at least 1 woman on the executive teams of all enterprises evaluated, and on the other, nations such as Brazil and India, where 83% of businesses did not have a single woman.</span></p><p><span style="font-size:12pt;">Interested in learning more about the Business Case for Diversity & Inclusion (D&I)? You can download <a href="https://flevy.com/browse/flevypro/business-case-for-diversity-and-inclusion-dandi-6420">an editable PowerPoint presentation on <strong>Business Case for Diversity & Inclusion (D&I)</strong> here </a>on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</span></p><p><span style="font-size:12pt;"><strong>Want to Achieve Excellence in Human Resource Management (HRM)?</strong></span></p><p><span style="font-size:12pt;">Gain the knowledge and develop the expertise to become an expert in Human Resource Management (HRM). Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. <a href="https://flevy.com/browse/stream/human-resources">Click here for full details.</a></span></p><p><span style="font-size:12pt;">The purpose of Human Resources (HR) is to ensure our organization achieves success through our people. Without the right people in place—at all levels of the organization—we will never be able to execute our Strategy effectively.</span></p><p><span style="font-size:12pt;">This begs the question: Does your organization view HR as a support function or a strategic one? Research shows leading organizations leverage HR as a strategic function, one that both supports and drives the organization's Strategy. In fact, having strong HRM capabilities is a source of Competitive Advantage.</span></p><p><span style="font-size:12pt;">This has never been more true than right now in the Digital Age, as organizations must compete for specialized talent to drive forward their Digital Transformation Strategies. Beyond just hiring and selection, HR also plays the critical role in retaining talent—by keeping people engaged, motivated, and happy.</span></p><p><span style="font-size:12pt;"><a href="https://flevy.com/browse/stream/human-resources">Learn about our <strong>Human Resource Management (HRM) Best Practice Frameworks</strong> here.</a></span></p><p><span style="font-size:12pt;"><strong>Do You Find Value in This Framework?</strong></span></p><p><span style="font-size:12pt;">You can download in-depth presentations on this and hundreds of similar business frameworks from the <a href="https://flevy.com/pro/library">FlevyPro Library</a>. <a href="https://flevy.com/pro">FlevyPro</a> is trusted and utilized by 1000s of management consultants and corporate executives.</span></p><p><span style="font-size:12pt;">For even more best practices available on Flevy, have a look at our top 100 lists:</span></p><ul><li><span style="font-size:12pt;"><a href="https://flevy.com/top-100/strategy">Top 100 in Strategy & Transformation </a></span></li><li><span style="font-size:12pt;"><a href="https://flevy.com/top-100/consulting">Top 100 Consulting Frameworks </a></span></li><li><span style="font-size:12pt;"><a href="https://flevy.com/top-100/digital">Top 100 in Digital Transformation </a></span></li><li><span style="font-size:12pt;"><a href="https://flevy.com/top-100/opex">Top 100 in Operational Excellence </a></span></li><li><span style="font-size:12pt;"><a href="https://flevy.com/top-100/organization">Top 100 in Organization & Change </a></span></li></ul></div>